E-commerce to innovate new e-business model
As an important area for the economic development of Shanghai, Pudong is where online industries boom. A large number of e-commerce enterprises are growing rapidly in the new area and are expected to lead the new generation of e-business innovation models.
In line with the city’s 13th Five-Year Plan (2016-2020) for the development of electronic commerce, Shanghai will build itself into a central hub of e-commerce with global influence by 2030.
It will feature the agglomeration of high end elements, the well-developed industrial ecology, and a wide range of innovative applications, outstanding service functions and strong rules of discourse.
The city’s booming e-commerce business has revealed a trend of joint development online and offline. It has made progress in accelerating the transformation of business and promoting the development of the service industry, as well as cross border e-commerce.
Pudong has become home to a large number of commodity trading platforms, online shopping, third-party payment and professional and technical services.
They have made contributions to the economic development of the new area.
During a recent awards ceremony hosted by the Pudong government, there were 20 prominent roles doing their businesses online, such as the online education platform Hujiang EdTech, Alibaba’s local commerce platform Koubei, online-to-offline grocery chain Hema Xiansheng, China Literature and LinkSure Network (the developer of Wi-Fi Master Key). They were honored as the best performers in innovation and entrepreneurship.
Of the award winners, Hujiang EdTech has invested in diversified educational startups to expand its online educational ecosystem, apart from its massive online course platform Hujiang Online Class.
It has developed CCtalk, an interactive online education platform where teachers can develop, teach, distribute and monetize their courses.
It has also launched the Hu+ Project, an education charity program to provide online courses and other learning resources, free of charge, to elementary and middle school students in rural and underdeveloped areas in China as well as help teachers develop innovative online curriculum and take training courses easily.
It was entitled to the Innovative Startup Award by the government.
Pudong reported more than 340 billion yuan (US$54 billion) of trade in e-commerce in 2016, accounting for one fifth of the city’s total.
The new area will enhance its support to e-commerce enterprises and industrial parks during the period of the 13th Five-Year Plan.
It will fulfill tailored policies and offer support to enterprises and industrial parks in different stages.
At one of the Pudong-based e-commerce industrial parks, the Woniu Space in Zhoupu Town, 40 startups reported 300 million yuan of income last year and contributed 4.5 million yuan of tax at the same time.
Apart from the tailored support, Pudong will rely on the institutional reform in the China (Shanghai) Pilot Free Trade Zone to bring new energy and new vitality to the e-commerce enterprises and set off a wave of development for a new round of Internet plus industries to promote the transformation and innovational development of the new area.
In one of the first measures introduced at the Shanghai FTZ, the General Administration of Customs launched a cross-border E-commerce platform, buyeasi.com. This means online vendors are monitored by the GAC, thereby avoiding the risk of fake products and lowering product prices through the use of bonded warehouses.
Meanwhile, the regulator for the FTZ has set up a demonstration area to improve services for cross-border e-commerce.
The FTZ administration joins hands with inspection and quarantine, foreign exchange and taxation departments to boost efficiency and lower the costs of clearance for customers.
The regulator also promoted the development of finance, logistics and business consulting services in the area to cultivate an ecosystem of cross-border e-commerce.
Companies like JD.com and Suning Commerce Group Co have set up businesses in the area.